INSURANCE CODE
SUBTITLE E. OTHER TAXES
CHAPTER 281. RETALIATORY PROVISIONS
SUBCHAPTER A. RETALIATORY TAXES AND OTHER CHARGES
§ 281.001. DEFINITIONS. In this subchapter:
(1) "Domestic insurer" means an insurer organized in
this state.
(2) "Foreign insurer" means an insurer organized in
another state.
(3) "Tax or other charge" includes:
(A) a tax, including an income, corporate
franchise, or maintenance tax;
(B) a fee, including a regulatory fee similar to
a maintenance tax;
(C) a license;
(D) a fine;
(E) a penalty;
(F) a deposit requirement; and
(G) any other obligation.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.002. TREATMENT OF ALIEN INSURER AS FOREIGN
INSURER. For purposes of this subchapter, an alien insurer is
considered to be organized in the state designated by the insurer in
which the insurer:
(1) has established its principal office or agency in
the United States;
(2) maintains the greatest amount of its assets held
in trust or on deposit for the security of its policyholders or
policyholders and creditors in the United States; or
(3) was admitted to engage in business in the United
States.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.003. EXCEPTION. This subchapter does not apply to
a person, company, firm, association, group, corporation, or
insurance organization of any kind from another state that engages
in business in this state if:
(1) at least 15 percent of the voting stock of the
person, company, firm, association, group, corporation, or
insurance organization is owned by a corporation organized under
the laws of and domiciled in this state; and
(2) the person, company, firm, association, group,
corporation, or insurance organization met the requirements of
Subdivision (1) before January 30, 1957.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.004. RETALIATORY TAXES OR OTHER CHARGES,
PROHIBITIONS, AND RESTRICTIONS. (a) The comptroller shall impose
and collect a tax or other charge or a prohibition or restriction on
a foreign insurer authorized to engage in business in this state if:
(1) the foreign insurer's state of organization by law
imposes a tax or other charge or a prohibition or restriction on a
similar domestic insurer that is or may be authorized to engage in
business in that other state; and
(2) the sum of the taxes or other charges,
prohibitions, and restrictions imposed by that other state is more
than the sum of the taxes or other charges, prohibitions, and
restrictions that this state directly imposes on the foreign
insurer.
(b) The comptroller shall impose and collect the tax or
other charge, prohibition, or restriction under Subsection (a) in
the same manner and for the same purpose as the foreign insurer's
state of organization.
(c) The sum of the taxes or other charges that this state
imposes on a foreign insurer under this subchapter may not exceed
the sum of the taxes or other charges imposed by the foreign
insurer's state of organization on a similar domestic insurer that
is or may be authorized to engage in business in that other state.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.005. EXCLUSION OF CERTAIN TAXES OR CHARGES. In
determining an insurer's taxes or other charges under this
subchapter, the comptroller may not consider:
(1) an ad valorem tax on property;
(2) a personal income tax;
(3) a sales tax;
(4) a surcharge that an insurer may recover directly
from policyholders; or
(5) an assessment for a special purpose, such as an
assessment for a guaranty association, high risk health pool, joint
underwriting association, or windstorm association, under the law
of this or another state.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.006. TREATMENT OF CERTAIN TAX REDUCTIONS AND
CREDITS. (a) If another state by law reduces a tax rate or grants
a tax credit to a domestic insurer that makes an investment in or
maintains offices in that state or that meets a similar
requirement, the law that reduces the rate or grants the credit
shall be applied in the same manner in this state for the purpose of
determining the total taxes or other charges under this subchapter.
(b) For purposes of this subchapter, a tax offset or credit
related to an assessment described by Section 281.005 is considered
a tax paid in this or another state, as appropriate.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.007. TAX REPORT; ADMINISTRATION AND COLLECTION OF
TAX. The comptroller shall prescribe a due date for filing a
report and paying a tax imposed under this subchapter.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
SUBCHAPTER B. RETALIATORY PENALTIES OR OTHER OBLIGATIONS
§ 281.051. DEFINITIONS. In this subchapter:
(1) "Domestic insurer" and "foreign insurer" have the
meanings assigned by Section 281.001.
(2) "Penalty or other obligation" includes a sanction,
fine, financial, deposit, or regulatory requirement, and any other
obligation, prohibition, or restriction.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
§ 281.052. IMPOSITION OF PENALTY OR OTHER
OBLIGATION. (a) The Texas Department of Insurance shall impose a
penalty or other obligation on a foreign insurer authorized to
engage in the business of insurance in this state if:
(1) the insurance department or an insurance
regulatory official of the foreign insurer's state of organization
imposes a penalty or other obligation on any domestic insurer
authorized to engage in the business of insurance in that state;
and
(2) the penalty or other obligation is imposed because
the Texas Department of Insurance did not:
(A) obtain or maintain accreditation
certification or a similar form of approval, compliance, or
acceptance from or as a member of the National Association of
Insurance Commissioners or a committee, task force, working group,
or advisory committee of the association; or
(B) comply with a model act, regulation, report,
or requirement of the National Association of Insurance
Commissioners or a committee, task force, working group, or
advisory committee of the association, including a market conduct,
financial examination, or annual financial statement.
(b) A penalty or other obligation imposed by the Texas
Department of Insurance on a foreign insurer under this section
must be the same as the penalty or other obligation imposed on the
domestic insurer by the insurance department or regulatory official
of the foreign insurer's state of organization.
Added by Acts 2003, 78th Leg., ch. 1274, § 1, eff. April 1, 2005.
